Tuesday, November 25, 2008

Crystal ball

Again, it is interesting to see how accurate a scenario can be with however that same caveat of volatility acting as a time compressor. Oh well, it is a daily report, so users of our technique will obviously adapt to lower time frames, and others can always contact me for custom market analysis.

EURUSD: We saw that bounce to 1.27, which broke easily, so we stayed long to the next very clear resistance level at ~1.295. It is a resistance level which could break later on even if a pause is likely today. We'll provide new targets tomorrow.

ER: A similar story in a way as i announced the 440 target without fully anticipating it could be hit the same day. We do have an upper bias in the short term but profit taking is likely. The high 430s area is a substantial resistance for now, and even if we go higher over the next few days i.e. ahead of the long weekend. A retracement is more than likely so long term players do not have to rush into the market just yet.

ES: Very similar situation with a resistance level around 850. ES is short term overbought so should pause on its way to 875. Again, this is short term play, and not a motivation to buy frantically just yet. ES will retrace to the 810 area at some point.

(posted ~1AM Eastern)